India is set to expend $80 billion worth of cell phone components

India is set to expend $80 billion worth of cell phone components throughout the following five years, as per a study uncovered recently, including that this will help the nation turn into a worldwide assembling center point with cutting edge local production of smartphones.

As per study done by IIM Bangalore and market research firm Counterpoint Research this will offer a huge opening just from domestic demand perspective to manufacture mobile phones in the India and increasingly source components locally, thus, reducing the dependence on imports.

Aruna Sundararajan, Secretary, Ministry of Electronics and IT, Government of India said that “India can potentially be the world leader in mobile phone manufacturing ecosystem and this has to be done in a phased manner,”

In early 2016 India has outshined the US to become the second largest global smartphone market in terms of userbase and is on track to surpass half a billion smartphone user mark within coming five years.

The contribution of nationally manufactured mobile phones has amplified from 14 per cent in 2014 to 67 per cent in 2016 and is further estimated to reach to about 96 per cent by 2020.

Although, 67 per cent of the handsets manufactured in India contribute to just six per cent of the true local value addition with most of the OEMs still importing.

The study also revealed total of 50 facilities from original equipment manufacturers (OEMs) to original design manufacturers (ODMs) and electronics manufacturing services (EMS) to component suppliers which are involved in manufacturing of mobile phones in the country, almost three-fourth are Indian manufacturers, followed by Taiwanese with 10 per cent share and Chinese with 10 per cent share.